Baazar Style Retail Secures INR 250 Cr from Anchor Investors Ahead of IPO The IPO, valued at INR 835 crore, is scheduled to open for subscription on August 30 and will close on September 3. The price band for the IPO has been set between INR 370 and INR 389 per share.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Baazar Style Retail Ltd, a value fashion retailer, announced that it has raised INR 250 crore from anchor investors just one day before its much-anticipated initial public offering (IPO) opens for public subscription. The company, known for its strong presence in West Bengal and Odisha, has attracted significant interest from major investors.
Among the anchor investors are notable names such as Ashoka India Equity Investment Trust Plc, Volrado Venture Partners Fund IV Gamma, HSBC Global Investment Funds, Allianz Global Investors Fund, Al Mehwar Commercial Investments LLC, HDFC Mutual Fund, HSBC Mutual Fund, Bandhan Mutual Fund, and Bajaj Allianz Life Insurance Company.
According to a circular on the BSE website, Baazar Style Retail has allotted 64.29 lakh equity shares to these 28 funds at INR 389 per share, amounting to INR 250.1 crore.
The IPO, valued at INR 835 crore, is scheduled to open for subscription on August 30 and will close on September 3. The price band for the IPO has been set between INR 370 and INR 389 per share.
The offering is a mix of a fresh issue of equity shares worth INR 148 crore and an offer for sale (OFS) of up to 1.76 crore shares, valued at INR 687 crore at the upper end of the price band.
Promoter group entities and other selling shareholders, including Rekha Jhunjhunwala, Intensive Softshare Pvt Ltd, and Intensive Finance Pvt Ltd, will divest part of their stakes through the OFS.
The proceeds from the fresh issue will primarily be used to pay off INR 146 crore in debt, with the remaining funds allocated for general corporate purposes. This fundraising comes shortly after the company raised INR 37 crore from Volrado Ventures Partners Fund II in a pre-IPO placement round, which led to a reduction in the fresh issue size.
Baazar Style Retail reported consolidated revenue from operations of INR 972.88 crore and a profit after tax of INR 21.94 crore for FY24. Investors looking to participate in the IPO can bid for a minimum of 38 shares per lot, with additional shares in multiples of 38. Axis Capital, Intensive Fiscal Services, and JM Financial are serving as the book-running lead managers for the issue.
